Eight Commonly Overlooked Tax Deductions

Are you missing out on these eight overlooked tax deductions?
Are you missing out on these eight overlooked tax deductions?

If you keep good records, deductions can be a great way to reduce your taxable income. Increasing your allowable deductions means the less tax you owe and the more money you get to keep.

To maximize your deductions, it's a good idea to familiarize yourself with tax rules -- there are likely many deductions you're missing out on.

A number of deductions that get overlooked quite a bit are called "deductions subject to the 2% limit." These deductions are only deductible to the extent that they are more than 2% of your adjusted gross income (AGI). You figure your total deductions subject to the 2% limit on Schedule A by subtracting 2% of your AGI from the total amount of these expenses. For example, if your AGI is $40,000, your deduction would be limited to those expenses over $800 (2% of $40,000).

To get you started, here's a list of eight commonly overlooked tax deductions subject to the 2% limit:

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